Profit-maximizing input combination: A firm maximizes profit when MRP / P is equal for all inputs and each ratio equals one: MRP_L / P_L = MRP_K / P_K = 1.
How to apply it: Distinguish the least-cost rule from the profit-maximizing input combination by noting the latter also requires MRP/P = 1.
Course: AP Microeconomics · Unit: Factor Markets
Practice questions about Profit-maximizing input combination on AimFive — get rubric-based feedback showing exactly which points you earned.
AP and Advanced Placement are trademarks of College Board. AimFive is not affiliated with or endorsed by College Board.